Organon CEO stands down amid contraceptive sales malpractice probe

Core Insights - Organon CEO Kevin Ali has resigned following the discovery of sales malpractice involving improper wholesaler sales practices [1][2] - The misconduct occurred between 2022 and 2025, with the board identifying issues at the end of Q4 2022, Q3-Q4 2024, and the first three quarters of 2025 [2] - Organon's stock value dropped 20.9% from $9.16 to $7.25 after the probe's findings were published, reflecting a 58% decrease since 2024 [3] Company Restructuring - Joseph Morrissey has been appointed as the interim CEO, taking over from Ali, with support from board chair Carrie Cox and lead independent director Robert Essner [4][5] - The head of US commercial and government affairs was also terminated as a result of the investigation, while CFO Matt Walsh remains in his position [5] - The board is actively searching for a permanent CEO, considering both internal and external candidates [5] Historical Context - This incident follows Organon's spinoff from MSD in 2021, which aimed to position the company as a leading women's health specialist [6] - Previously, Organon faced allegations of Medicaid fraud related to its anti-depressant Remeron, which was settled in court for $34 million [6]